STMicroelectronics (NYSE:STM) Announces Earnings Results

STMicroelectronics (NYSE:STM) posted its earnings results on Thursday. The semiconductor producer reported $0.13 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.09), Zacks reports. STMicroelectronics had a net margin of 1.41% and a return on equity of 2.70%. The firm had revenue of $3.10 billion during the quarter, compared to analyst estimates of $3.11 billion.

Here are the key takeaways from STMicroelectronics’ conference call:

• Q1 revenues $3.1B with book‑to‑bill well above 1 across all end markets; company guides Q2 revenues to $3.45B (±350bp), implying +11.6% sequential growth and reiterates double‑digit revenue growth for 2026.
• ST is positioning for a major AI/data‑center ramp — expects data‑center revenues “nicely above $500M” in 2026 and “well above $1B” in 2027, has started high‑volume production of the PIC100 silicon‑photonics platform and secured a multi‑year, multibillion‑dollar engagement with Amazon Web Services.
• Completed the acquisition of NXP’s MEMS sensor business (≈$40M contribution in Q1) and says integration is on track to strengthen automotive sensor design wins, though it brings PPA effects and incremental OpEx.
• Q1 profitability and cash flow were impacted by restructuring and acquisition payments — reported net income $37M (non‑GAAP EPS $0.13), free cash flow ≈‑$720M including $895M acquisition cash out, plus $71M of impairment/restructuring and ongoing manufacturing reshaping costs that weigh on near‑term gross margin.

STMicroelectronics Trading Up 14.1%

STM traded up $6.33 during trading on Thursday, hitting $51.19. The company’s stock had a trading volume of 15,515,595 shares, compared to its average volume of 8,863,552. STMicroelectronics has a twelve month low of $21.11 and a twelve month high of $51.14. The stock has a market cap of $45.98 billion, a PE ratio of 283.85 and a beta of 1.51. The firm’s 50 day moving average price is $35.19 and its 200-day moving average price is $29.60. The company has a debt-to-equity ratio of 0.10, a current ratio of 3.36 and a quick ratio of 2.43.

Key Stories Impacting STMicroelectronics

Here are the key news stories impacting STMicroelectronics this week:

• Positive Sentiment: Management raised the Q2 outlook: mid‑point revenue guidance of ~$3.45B (company release) — above recent street consensus — and a stronger gross‑margin outlook, suggesting demand and pricing trends improve into Q2. STMicroelectronics Reports Q1 2026 Financial Results
• Positive Sentiment: Analyst upgrade: Craig Hallum bumped STM from “hold” to “buy” with a $58 target (implies upside vs. prior levels), which can drive momentum and buy interest. Finviz Analyst Note
• Positive Sentiment: Company highlighted secular demand drivers (AI, personal electronics, communications) and reported strong YoY revenue growth — press coverage cites AI-driven sales gains that support longer‑term growth narratives. Apple Supplier STMicroelectronics Logs Higher Sales on Strong AI Demand
• Positive Sentiment: ST plans an investor webcast on May 4 to discuss the LEO (low‑Earth orbit) opportunity — signaling management is promoting new addressable markets that could drive multiple expansion. STMicroelectronics to host investor call on the LEO opportunity
• Neutral Sentiment: Company published the Q1 slide deck and conference‑call materials for detail on segment trends and margins — useful for modeling but not an immediate catalyst by itself. Q1 Slide Deck
• Neutral Sentiment: Earnings call transcript is available for detail on product mix and end‑market momentum — worth reviewing for conviction but neutral until new facts emerge. Q1 2026 Earnings Call Transcript
• Negative Sentiment: GAAP EPS disappointed: Q1 GAAP EPS $0.13 vs. consensus ~$0.22 (miss of ~$0.09); net margin and ROE remain low on a GAAP basis — a short‑term concern for earnings‑focused investors. STMicroelectronics Q1 Earnings Summary

Analyst Upgrades and Downgrades

STM has been the topic of several recent research reports. Susquehanna boosted their price objective on shares of STMicroelectronics from $35.00 to $40.00 and gave the stock a “positive” rating in a research report on Monday, February 23rd. Weiss Ratings cut shares of STMicroelectronics from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, March 6th. Morgan Stanley raised shares of STMicroelectronics from an “equal weight” rating to an “overweight” rating in a report on Thursday, March 26th. Mizuho set a $48.00 price objective on shares of STMicroelectronics and gave the stock an “outperform” rating in a research note on Thursday, April 16th. Finally, Craig Hallum raised STMicroelectronics from a “hold” rating to a “buy” rating and set a $58.00 target price on the stock in a research note on Thursday. Nine equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $39.07.

Institutional Investors Weigh In On STMicroelectronics

A number of institutional investors have recently bought and sold shares of the stock. Invesco Ltd. increased its position in STMicroelectronics by 29.9% during the fourth quarter. Invesco Ltd. now owns 5,199,951 shares of the semiconductor producer’s stock worth $134,887,000 after purchasing an additional 1,196,018 shares during the last quarter. Mackenzie Financial Corp grew its stake in shares of STMicroelectronics by 12.1% during the 4th quarter. Mackenzie Financial Corp now owns 558,730 shares of the semiconductor producer’s stock valued at $14,532,000 after buying an additional 60,418 shares during the period. Empowered Funds LLC increased its holdings in shares of STMicroelectronics by 16.6% during the 4th quarter. Empowered Funds LLC now owns 24,763 shares of the semiconductor producer’s stock worth $642,000 after buying an additional 3,521 shares during the last quarter. XTX Topco Ltd purchased a new position in shares of STMicroelectronics in the 4th quarter worth $442,000. Finally, Voloridge Investment Management LLC raised its position in shares of STMicroelectronics by 44.6% in the 4th quarter. Voloridge Investment Management LLC now owns 985,379 shares of the semiconductor producer’s stock worth $25,561,000 after buying an additional 303,937 shares during the period. 5.05% of the stock is currently owned by hedge funds and other institutional investors.

About STMicroelectronics

STMicroelectronics is a global semiconductor company headquartered in Geneva, Switzerland, formed through the 1987 merger of SGS Microelettronica and Thomson Semiconducteurs. The company designs, develops and manufactures a broad range of semiconductor products and solutions that serve multiple end markets worldwide. ST’s offerings span from basic components to integrated systems, emphasizing energy-efficient and high-performance devices for modern electronics.

Product categories include microcontrollers (notably the widely used STM32 family), analog and mixed-signal ICs, power MOSFETs and power-management devices, MEMS and sensors, image sensors, and discrete semiconductors.